A cheaper version of the lifesaving diabetes medication just launched in the US

It's called Basaglar, and it is 15% less than the list price of Lantus and Toujeo, two long-acting insulins made by Sanofi Aventis, 21% less than the list price of Levemir, and 28% less than Tresiba, two long-acting insulins made by Novo Nordisk.

Basaglar was approved in December 2015, but had to wait a year before launching on Thursday.

A spokeswoman for Eli Lilly, the company that makes Basaglar and other insulins, told Business Insider that the list price for a pack of 5 pens is $316.85 — that's before any discounts, or factoring in what insurance might cover.

But because it's made of living cells, it’s what doctors call a biologic product, and it's more complicated and difficult to manufacture than the medicines most often produced generically.

That's why Basaglar isn't considered a generic, it's called a "follow-on biologic." Others taking this approach have gotten approved as biosimilars, and like Basaglar have come in at a slight discount — roughly 15% — off the list price of the original drug.

To become a follow-on biologic, Basaglar had to show that its version of the drug was "sufficiently similar to Lantus to scientifically justify reliance," and the drug had to be tested in its own clinical trials, according to the FDA. This helped cut out some steps that are part of the approval process.

The promise of the discount was enough to get CVS Health and other pharmacy benefits managers to carry the drug. CVS said in August that it would only cover Basaglar instead of Lantus.

Insulin price hikes in the spotlight

Discounts to the price of insulin could relieve the financial burden of diabetes on families. In September, Business Insider spoke with families on these plans, which require a large out of pocket outlay by the patient before insurance kicks one. They are particularly vulnerable to price hikes. One person said they were spending as much on supplies as their monthly mortgage payment.

Here's a chart of Lantus and Levemir price increases up until September 2016, per vial of 10 milliliters. Andy Kiersz/Business Insider

On Tuesday, Lilly came out with a discount of up to 40% for people with high-deductible insurance plans. The discounts come through an app called Blink Health, which lets users pre-pay for your prescriptions to lock in discounts. Basaglar is included in the program, and Lilly and its partner Boehringer Ingelheim also set up a patient assistance program, including a savings card to help eligible people pay as little as $5 for a month's supply.

Unlike its rival Novo Nordisk, which committed to only single-digit price increases going forward, Lilly hasn't commit to any caps on drug price increases, and neither company has lowered their list prices, or the prices set by the drugmaker before any rebates or discounts are applied.